BOB's asset quality improved significantly as fresh slippages declined by 76% QoQ and 35% YoY. Notably, 85% of the slippages during the quarter were from the watchlist. While Gross nonperforming asset (NPA) ratio increased by 20 bps QoQ to 12.5%, Net NPA ratio declined by 9 bps QoQ to 5.4% as the bank improved its provision coverage ratio (PCR) by 190 bps QoQ to 69.1%. Notably, the watchlist of the bank now stands at Rs8,600cr (2.0% of the advances). Further, the bank has an exposure of Rs5,813cr and Rs3,843cr towards large NCLT accounts referred by RBI (List 1 + List 2) and has made provisions of 64.4% and 62.7%, respectively. We believe that a substantial proportion of the pain has been recognised. Hence, slippages are expected to moderate...